# In the matter of LIfestyle Fitness Private Limited IA-3602-2020 in IB-310-ND-2019

> NCLT judgment dated 2020-09-21. Citation: TCN-2020-NCLT-00571. The case involves an application (IA-3602/2020) filed in IB/310/ND/2019 under Section 33(1) of…

- **Court:** NCLT
- **Order date:** 21 Sept 2020
- **Citation:** TCN-2020-NCLT-00571
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lifestyle-fitness-private-limited-ia-3602-2020-in-ib-310-nd-2019-76943f9b

## Summary

### Background

The case involves an application (IA-3602/2020) filed in IB/310/ND/2019 under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking an order for liquidation of the Corporate Debtor, Lifestyle Fitness Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated earlier, and Mr. Shyam Arora was appointed as the Interim Resolution Professional (IRP). Later, Mr. Kamal Agarwal was proposed as the Resolution Professional (RP) and his appointment was confirmed by the Tribunal. An application for extension of CIRP was dismissed. No resolution plan was received.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Lifestyle Fitness Private Limited. Initially, IB/310/ND/2019 was filed under Section 9 of the I&B Code, 2016, and the CIR process was initiated on 2019-06-14. Shyam Arora was appointed as the Interim Resolution Professional (IRP). Subsequently, Kamal Agarwal was appointed as the Resolution Professional (RP). The sole financial creditor decided not to appoint the IRP as the RP. The existing statutory auditors of the Corporate Debtor did not cooperate and failed to provide the audited balance sheet for the financial year 2018-19 and provisional balance sheet up to 2019-06-14. The COC decided to remove them due to non-performance. The suspended board of directors failed to share information with

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Lifestyle Fitness Private Limited, should be ordered for liquidation …

**Ratio:** Section 33(1) of the I&B Code, 2016, mandates liquidation if no resolution plan is

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**Reasoning:** The Tribunal observed that no resolution plan was received by the Authority under

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**Interpretation:** Section 33(1) is interpreted strictly to mean that if a resolution plan is not

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**Application:** Since no resolution plan was received and the application for extension was

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## Parties

- **Judges:** Ch. Mohd Sharief…; Narendra Kumar…
- **Appellants:** Kamal Ag…
- **Respondents:** Lifestyle Fitness…

## Timeline

- **2019-06-14 — CIRP Init…**: CIRP initiated against the Corporate Debtor, Lifestyle Fitness Private Limited, under…
- **2019-07-02 — Public Annou…**: IRP made a public…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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